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Jaffe Seeks to Enforce Shapiro Settlement in Madoff Case

March 23 (Bloomberg) -- Robert Jaffe, the son-in-law of
Boston-based philanthropist Carl Shapiro, asked a judge to
enforce a $625 million settlement in the Bernard Madoff
bankruptcy case and block further lawsuits.

Shapiro, one of Madoff’s first clients, along with 19
family members, settled potential lawsuits in December by
agreeing with the trustee liquidating the jailed conman’s estate
to forfeit $625 million in profits from the Ponzi scheme.

A U.S. bankruptcy judge said in February that he lacked
jurisdiction to stop third-party lawsuits against Jaffe, the
former vice president of Cohmad Securities Corp., according to a
court filing. Jaffe appealed the decision yesterday in U.S.
District Court in Manhattan.

Jaffe and Cohmad, a brokerage that shared a Manhattan
building with Madoff’s firm, were sued in June 2009 by trustee
Irving Picard, who alleged they were part of the Madoff network
and took more money out of the Ponzi scheme than they put in.
December’s settlement included $38 million paid on behalf of
Jaffe and others, “satisfying in full the trustee’s claims,”
according to a court filing.

Under the Shapiro settlement, the family agreed to turn
over $550 million to Picard for distribution to Madoff
investors. Another $75 million was earmarked for the U.S.
Justice Department, which appointed Picard as a special master
to distribute those funds.

The appeal is Jaffe v. Picard, 11-01993, U.S. District
Court, Southern District of New York (Manhattan).